[Code of Federal Regulations]
[Title 7, Volume 7, Parts 700 to 899]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR740.30]

[Page 329-330]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 740--NUT WAREHOUSES--Table of Contents
 
Sec. 740.30  Insurance requirements.

    (a) Each licensed warehouseman, when so requested in writing as to 
any nuts by the depositor thereof or lawful holder of the receipt 
covering such nuts, shall, to the extent to which in the exercise of due 
diligence he is able to procure such insurance, keep such nuts while in 
his custody as a licensed warehouseman insured in his own name or 
arrange for insurance otherwise to the extent so requested against loss 
or damage by fire, lightning and tornado. When insurance is not carried 
in the warehouseman's name the receipts shall show that the nuts are not 
insured by the warehouseman. Such insurance shall be covered by lawful 
policies issued by one or more insurance companies authorized to do such 
business, and subject to service of process in suits brought, in the 
State where the warehouse is located. If the warehouseman is unable to 
procure such insurance to the extent requested, he shall, by telegraph 
or orally in person or by telephone and with subsequent confirmation in 
writing, and at his own expense, immediately notify the person

[[Page 330]]

making the request of the fact. Nothing in this section shall be 
construed to prevent the warehouseman from adopting a rule that he will 
insure all nuts stored in his warehouse.
    (b) Each warehouseman shall comply fully with the terms of insurance 
policies or contracts covering his licensed warehouse and all products 
stored therein, and shall not commit any acts, nor permit his employees 
to do anything, which might impair or invalidate such insurance.
    (c) Each warehouseman shall keep exposed conspicuously in the place 
prescribed by Sec. 740.8, and at such other place as the Administrator 
or his representative may from time to time designate, a notice stating 
briefly the conditions under which the nuts will be insured against loss 
or damage by fire, lightning, and tornado.
    (d) Each warehouseman shall, in accordance with his contracts with 
insurance and bonding companies for the purpose of meeting the insurance 
and bonding requirements of the regulations in this part, pay such 
premiums, permit such reasonable inspections and examinations, and make 
such reasonable reports as may be provided for in such contracts.
    (e) Each warehouseman shall promptly take such steps as may be 
necessary and proper to collect any moneys which may become due under 
contracts of insurance entered into by him for the purpose of meeting 
the requirements of the regulations in this part, and shall, as soon as 
collected, promptly pay to the persons concerned any portion of such 
moneys which they may be entitled to receive from him.